Norse to Offer 23 Million New Shares

In connection with its filing for listing on the Bovespa Stock Exchange (Novo Mercado), Norse Energy do Brasil S.A. intends to offer 23 million new shares at Reais 16-20 per share. Prior to the IPO, the company is a wholly-owned subsidiary of Norse Energy Corp ASA. The pre-money valuation of equity is Reais 560-700 million (USD 319-399 million), whereas gross proceeds from the shares issue will be about Reais 368-460 million (USD 210-262 million).

Excluding an over-allotment option of 15 percent of the primary shares issue, Norse Energy do Brasil S.A. will have 58 million shares following the IPO. Norse Energy Corp ASA holds 35 million shares in Norse Energy do Brasil S.A., and will retain an ownership of about 60 percent excluding effects of the over-allotment option.

Norse Energy do Brasil S.A. currently holds about USD 155 million in interest bearing debt, of which USD 80 million is debt to the parent company Norse Energy Corp ASA and USD 75 million is debt to Brazilian financial institutions.

Norse Energy do Brasil S.A. commences its international IPO road show today, January 17th, 2008. The reservation period runs from January 17th through January 28th, 2008, and pricing and allocation is expected to take place on January 29th , 2008. The first day of trading on the Bovespa Stock Exchange in Sao Paulo, Brazil, is expected on February 1st , 2008.

UBS Pactual in Brazil acts as global book runner in the offering, with Tristone Capital, Unibanco and Bulltick acting as co-managers.